Question

Which statement correctly describes Product Taxes?

Options

• Taxes paid in relation to production and not dependent on the quantity produced

• Taxes levied per unit of a good or service

• Taxes calculated by subtracting Total Output from Intermediate Consumption

• Taxes paid only to factors of production

Answer 1

Product Taxes are levied per unit of a good or service. GST, customs duties, and export and import duties are examples.